ETHICAL COMPLIANCE REPORT

ADANI ENERGY SOLUTION

Sector:

Utilities

Industry:

Utilities - Independent Power Producers

Overall Compliance

questionable

PRIMARY BUSINESS FILTER
energy
compliant
REVENUE RATIO FILTER
3.3%
View Calculations
DEBT RATIO FILTER
63.2%
View Calculations
LIQUIDITY RATIO FILTER
38%
View Calculations

Revenue Ratio

The sum of revenue from questionable and non-compliant sources should not exceed 3% of the total revenue. This ensures that the company has tolerable reliance on unethical sources of revenue.

3.3%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{5662100000.00}{172183100000.00} \times 100 = 3.30\%

FORMULA

\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%

Segment	Compliance	Value
Income from sale of Power and Transmission	compliant	₹14,330.39
Income under Service Concession Arrangements	compliant	₹136.72
Construction Income	compliant	₹858.31
Other Operating Revenue	compliant	₹1,281.94
interest & other	non-compliant	₹566.21
Other Non-operating Income	compliant	₹44.74

Debt Ratio

The interest bearing debt should not exceed 31% of the total assets. This is to ensure that the company is not paying a significant portion of its assets as interest.

63.2%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{370088700000.00}{585788100000.00} \times 100 = 63.20\%

FORMULA

\textbf{Debt Ratio:} \\[12pt] \dfrac{\text{Interest Bearing Debt}}{\text{Total Assets}} \times 100 \; \leq \; 30\%

Liquidity Ratio

The total liquid assets should not exceed 90% of the total assets. This is to ensure that trading this stock does not become similar to trading a currency.

38%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{222811400000.00}{585788100000.00} \times 100 = 38.00\%

FORMULA

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{\text{Total Liquid Assets}}{\text{Total Assets}} \times 100 \; \leq \; 90\%